Visa unveils innovative card payment system

November 24, 2006

Visa is to launch a new system which will allow its credit and debit card holders to pay for small transactions by simply waving their card over a scanner.

Cards can even be left inside a purse or wallet and still be read, similar to the way that Oyster travel cards are used on the London Underground system.

For purchases under £10, users will be able to wave their card over a reader and the amount will then either be charged to the customer's bill or withdrawn from their account for debit card users.

The system is expected to be convenient for many consumers as it will prevent them having to count out or wait for change or go through the chip and pin process.

Sandra Alzetta of Visa Europe said: "With over 75 per cent of all cash payments being less than £10, the introduction of contactless payments will play a major role in encouraging the use of cards over cash for low value transactions."

UK payments association Apacs noted that the current trend is for plastic to overtake cash and said there was "no reason to think" that this new system wouldn't catch on.

Visa expects the scheme to be in effect by the end of next year, with the initial rollout taking place in London.